Mutual Fund Basics

Mutual funds are a type of investment vehicle that pools money from multiple investors. The value of the fund's shares fluctuates based on the performance of the underlying securities. Mutual funds are managed by professional fund managers and may have lower minimum investment requirements than other types of investments.

This guide will provide you the basics of mutual funds, the different types and how it can help you along your investment journey.

Mutual Fund Terms Defined

Learn the basics of mutual fund terms and concepts to be an informed investor. Here are nine terms to start with.

How Do Mutual Funds Work?

Mutual funds are a type of investment made up of a pool of funds from many investors. Learning more could help you understand for your portfolio needs.

How to Pick a Mutual Fund

Mutual funds could be a good way to build a diverse mix of stocks, bonds and other assets through one purchase. Learn ways on how to pick a mutual fund.

Mutual Funds vs Stocks

When you invest in a stock, you're buying shares of a company. When you buy a mutual fund, you're buying shares in a fund which invests in multiple securities such as stocks. Learn more about the difference and how you can invest in them.

Types of Mutual Funds

There are many types of mutual funds, which can make it a challenge to choose the right funds for your needs. Understanding the basic types of funds could help you with your personal investment objectives.

What is a Hybrid Mutual Fund?

With a hybrid mutual fund, an investor can get exposure to multiple security types in one fund. Learn more about what hybrid mutual funds are and the advantages/disadvantages of investing in them.

What is a Target Date Fund?

A target date fund is an investment option consisting of mostly stocks and bonds. Learn more about what a target date fund is and who should consider one.

Pros & Cons of Mutual Funds

Mutual funds offer diversification and professional management but have fees, tax inefficiency, and market risk. Learn more about the different pros and cons of mutual funds.

What Is a Mutual Fund Account?

A mutual fund pools investors' money into professionally managed, diversified portfolios of securities with lower minimums and potential tax benefits. Learn more about this account.

Other Topics


Mutual funds are subject to market risk, including the potential of loss on principal amount invested.

Securities offered by registered representatives through W&S Brokerage Services, Inc., member FINRA/SIPC. All companies are member of Western & Southern Financial Group.

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